Radio industry and Government commit to spending £21m on local DAB

Local DAB: radio industry and the Government commit to £21m investment

Commercial radio groups, including Bauer Media, UTV Media and Global Radio, along with the BBC and the Government, have committed to invest at least £21m in local DAB infrastructure, with a decision on final digital switchover date promised in 2013.

After more than a year of negotiations, a non-legally binding memorandum of understanding (MoU) has been signed by a wide range of stakeholders and multiplex owners, including the BBC, Ofcom and Folder Media's MuxCo.

Although there had been speculation that parties such as Global Radio and UTV Media might refuse to sign the MoU, both companies have now agreed to the terms.

Through the MoU, the industry and Government have agreed in principle to pay up to £21m to fund the build-out of local DAB to FM "equivalences" over the next five years, and have also committed to consider further funding if necessary.

Following the signing of the MoU, five new local multiplexes will launch (in Gloucestershire, Hereford and Worcester, Northamptonshire, north-east Wales and west Cheshire, and Oxfordshire). A spokesman for the Department for Culture, Media and Sport (DCMS) said these would bring new radio services to 1.25 million listeners.

A spokesman for the DCMS said the MoU announced today (2 July), confirmed the Government's commitment to make a decision on radio switchover in 2013.

The signing of the MoU is the beginning of the first of a three-phase process. The Government will now ask Ofcom to establish the Joint Planning for Radio Group to produce plans outlining the infrastructure work needed to achieve FM equivalence.

If the Government agrees to the switchover and the parties agree a legally binding funding agreement, the process will move into phase two, to increase local DAB coverage to around 90% of that provided by FM.

According to figures from transmission operator Arqiva, 215 local and regional DAB transmitters broadcast across 46 local and regional multiplexes. It is expected that 150 additional transmitters will be needed to expand local DAB's reach to 90% of the UK.

Once the 90% criteria has been reached, the culture secretary, currently Jeremy Hunt, will be able to nominate a date or dates for radio switchover and enter phase three, which will build out local DAB coverage as wide as FM.

Communications Minister Ed Vaizey said: "This is a positive and significant step forward for the future of digital radio in the UK.

"As more and more listeners make the switch to digital, it's vital that we keep on increasing the areas able to receive a digital signal. Government, the BBC and the commercial operators are working together to ensure this happens."